Alberta farmland values hit new high

A generic shot of a farm in Alberta.

Farmland values in Alberta hit new highs in 2024, continuing an upward trend that has seen the price of an average acre double in the last ten years.

The average cultivated farmland values in Alberta were up 7.1 per cent in 2024, according to the annual report from Farm Credit Canada (FCC).

Despite lower commodity prices, farmland in Northern Alberta had the biggest jump in value, up 11.2 per cent compared to the previous year. This increase was driven by large producers expanding their operations, creating competition for limited land supply.

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Mixed use pastureland and cultivated land in historically low-value areas in the north experienced significant increases, likely because of high cattle prices and ranchers investing in expanding their land base.

Similar dynamics have pushed up farmland values across the country, said FCC’s chief economist J.P. Gervais.

“The increase in Canadian farmland values in 2024 reflects an enduring strength in demand for farmland amid some pressures on commodity prices,” Gervais said.

“The limited supply of farmland available for sale combined with lower borrowing costs resulted in an increase in the average price of farmland across the country.”

Scarcity of land was a key factor in the 10.5 per cent increase in value of land in the Peace region. With high demand and few listings on the market, “buyers were willing to convert pasture to cultivated land to meet their needs,” the FCC report said.

Though the Northern and Peace regions saw the largest year-over-year change in value, the cost of an acre is still lower than other areas of the province. The average acre in the north region now costs $4,700, compared to $6,400 in the central region and $18,000 for an acre of irrigated land in southern Alberta.

The value of irrigated land the southern region increased by 8.6 per cent, and dry and conditions and limited market availability are expected to keep driving demand and prices in the coming year.

“With persistent dry conditions, the value of irrigated land continues to rise, reflecting its critical role in boosting production and farm profitability”, Gervais said.

The FCC report says pastureland prices in central and southern Alberta were already elevated, “but a gap has emerged between the values of the two regions,” and pastureland in the southern region now boasts a $500 premium per acre.

Pastureland values in the south were up 10.6 per cent in 2024, more than twice the provincial average of 4.6 per cent.

By Brett McKay, Local Journalism Initiative Reporter, St. Albert Gazette